Abdush Salam Vs ITO (ITAT Kolkata)
The appeal was filed by the assessee against the order of the National Faceless Appeal Centre (NFAC) for Assessment Year 2018-19 relating to the computation of long-term capital gains on the sale of immovable property.
The assessee, an individual, filed his return declaring total income of ₹19,31,990. During the relevant year, he sold 26.562 dismil (8 katha 10 dhur) of land and disclosed long-term capital gain of ₹13,36,565 by adopting a sale consideration of ₹14,00,000 and indexed cost of acquisition of ₹63,435. During scrutiny assessment, the Assessing Officer invoked Section 50C of the Income-tax Act and substituted the actual sale consideration with the stamp duty value of ₹1,53,03,000. After allowing the indexed cost of acquisition, the Assessing Officer computed long-term capital gain at ₹1,52,39,565 and made the corresponding addition. The CIT(A) dismissed the assessee’s appeal.
Before the Tribunal, the assessee contended that the Assessing Officer had substituted the sale consideration with the stamp duty value without complying with the mandatory provisions of Section 50C(2) of the Act. It was also argued that the Assessing Officer should have referred the valuation of the property to the Departmental Valuation Officer (DVO). The Revenue submitted that the assessee had neither appeared during the assessment proceedings nor disputed the valuation adopted by the Assessing Officer, and therefore the provisions of Section 50C had been correctly applied.
